Please help, this is review question i do not understand

E F H I j L M N O P Q B D 1 Return of Return of 2 Economy Probabilit Stock A Stock B 3 Weak 15% -35% -25% 4 Average 55% 12% 14% 5 Strong 30% 35% 30% 6 7 Beta 1.3 1.2 8 9 101) Calculate the expected return for each stock 11 2) Calculate the required rate of return for each stock if the risk free rate is 2.5% and the market risk premium is 6.5% 12 3) Determine based on CAPM which of the stocks are a good investment 13 4) Based on the information given (you do not need to calculate) give a one sentence statement on whether or not you would achieve diversification 14 by combining these stocks to form a 50/50 portfolio 15 16 1) 17 2) 18 3) 19 4) sentence 20 21